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Which One of the Following Statements Related to Stock Indexes

Question 79

Multiple Choice

Which one of the following statements related to stock indexes is correct?


A) The index divisor increases in value whenever a stock in the index undergoes a stock split.
B) A value-weighted index includes both dividends and capital gains.
C) The S&P 500 index is value-weighted.
D) The DJIA is value-weighted.
E) Index staleness is more apt to be a problem for the DJIA than for the Wilshire 5000.

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